Cloud and 5G, how technologies will revolutionize companies’ business models

Cloud and 5G, how technologies will revolutionize companies' business models

The new 5G standard and the advent of cloud-based solutions will change the business models of companies. Here's how and what opportunities do they offer?

The impact of new technologies, and of innovation in general, on the business models of companies is becoming increasingly evident and widespread: from the primary sector to the tertiary sector, the profusion of the new 5G mobile communication standard and the advent of solutions entirely cloud-based computing, networking and storage are slowly sweeping away the classic technological solutions that rely on physical connections and hardware structures installed locally in company offices, so-called on-premises.

Start Magazine is collecting various contributions that mention the different impacts, direct and indirect, of the advent of the new 5G network standard: some concerning the implications on society, others concerning the strategies of the companies supplying the technology, while here we give voice to the possible opportunities that companies can seize to adapt or change their business model.


Although two different technologies may appear, 5G and Cloud Network not only start to go through different stages of development in parallel but, above all, intertwine to allow companies to ground business solutions that, before now, no one had ever imagined. .

In recent years, companies have seen an increasing demand from industries and from the market for flexibility. Flexibility that has often had to translate into resilience, or the ability to change operational plans on the run following particular events, whether positive or negative.

The step that led, from the request for flexibility by companies, to the offer of services that, in the face of offers of "pay as you go" instruments, or payment methods based on actual consumption, was therefore short. resources, allow you to change corporate business models.

Nowadays, every company that faces a market, whether B2B or B2C, has an internal IT department, which corresponds not only to a part of its value proposition but also a part of its operating costs. So how would companies react if they were offered a solution that allows its developers to design applications of any kind, without pre-provisioning all the hardware they will need? And again, how would they react if they were also offered to be able to work remotely, with the same security that you would normally have?

5G is offering an innovative proposal on the market, namely the possibility of bringing the same innovations that the cloud has brought to data centers in the enterprise networking sector. The possibility, therefore, to use an enterprise network service with the same ease and flexibility that you have when purchasing a cloud-based IT service.
Of course, the parallelism must be considered net of the structural differences and timing for the advent of the two technologies but what unites them is the security of the proposed solution which, in the case of 5G, is ensured by its ability to create virtual networks. isolated from each other and distinct from the core of the network. This, or network slicing, is what guarantees the required flexibility and security and which makes 5G a pivotal technology for innovations in the coming years.


In setting up the business case of Around, the project I dealt with during my journey at the 5G Academy, for example, the issue of the possible creation of a private network, based on public but dedicated resources, was often addressed. In the face of a possible investment in physical hardware, we have always believed that an optimal solution: on the one hand because a company starting from scratch needs flexibility and on the other because this also guarantees greater possibilities for scalability, which is a requirement that must be held in great importance if one wants to rely on external financing.

This trend is also confirmed by the acquisition of Affirmed Networks by Microsoft which, already with the creation of Azure, has shown a strong interest in the possible developments that 5G and Cloud can bring in the coming years. In this way, Microsoft will be able to offer companies solutions capable of guaranteeing cloud services also to telecommunications operators, enabling the operation of their networks even in hybrid environments, again thanks to network virtualization.

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Sat, 26 Sep 2020 05:29:52 +0000.